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Bitcoin Price Hits All Time High, Which Crypto Will Be Next?

Last Updated March 6, 2024 9:55 AM
Teuta Franjkovic
Last Updated March 6, 2024 9:55 AM
By Teuta Franjkovic
Verified by Peter Henn

Key Takeaways

  • Bitcoin shatters its previous all-time high, reaching new heights, fueled by surging demand for spot Bitcoin ETFs.
  • Analysts predict Bitcoin could reach $150,000 by year-end due to factors like limited supply and ETF inflows.
  • Ethereum and Solana could benefit from the upcoming Bitcoin halving and a potential crypto bull run.

Bitcoin reached a new all-time high of $69,170.63 on March 5 2024. But where it can get to next and, perhaps more importantly, which next major crypto will hit a record price?

Bitcoin Hits Record High Amid Strong Demand for Spot ETFs

Several factors had an impact on Bitcoin’s value in the current surge. Perhaps most notably, the significant demand for new spot Bitcoin exchange-traded funds (ETFs) helped boost the coin. As Bitcoin’s price soared to its highest level ever, analysts are now forecasting that its price could climb to $150,000  within the year and potentially reach $500,000 within the next five years.

The CEO of Bitwise, known for its spot Bitcoin ETF offerings, has predicted  a Bitcoin price of $250,000.

Similarly, Mike Novogratz from Galaxy Digital has expressed  that predicting the peak of this trend is challenging. He suggested that the upward trajectory could continue beyond current expectations.

Fresh demand from institutional products, such as spot Bitcoin exchange-traded funds (ETFs), which have attracted over $6.5 billion in net inflows since their inception, is fueling Bitcoin’s price. This demand spike comes as the supply of newly-issued Bitcoin is expected to decrease significantly. This is because, in April, the next Bitcoin reward halving event should take place. This supply-demand dynamic is leading to predictions of new all-time high prices for Bitcoin by the end of the year.

Eyeing Gold’s Market Cap Amid ETF Surge

According to CoinMarketCap , Bitcoin has experienced an impressive nearly 60% increase in value over the past month. Not only that, but its value has surged by more than 200% over the past year.

Some analyses suggest that if Bitcoin were to replace gold in global portfolios and reach gold’s $13.72 trillion market  cap, the value of each Bitcoin could potentially escalate to as much as $700,000. Following its record-breaking peak, the price of Bitcoin has slightly retreated, currently standing at approximately $64,000.

Anticipated Bitcoin Halving Set for Spring 2024: Potential Market Impact

The upcoming Bitcoin halving is slated for the spring of 2024, with mid-April the most likely time for this significant event.

Occurring every four years, Bitcoin halvings have historically been critical milestones for the cryptocurrency markets, often signaling the start of bull runs. This leads to the question: Which other cryptocurrencies might reach their all-time highs in the wake of the next halving?

Ethereum – Reigning Supreme in Smart Contracts 

ETH price
ETH | Credit: coincodex

Ethereum is the second-largest cryptocurrency in terms of market capitalization, a position it should maintain for the foreseeable future. With a market cap of $272 billion , Ethereum far outpaces its nearest rival, Tether, which has a market cap of around $95 billion.

If there is a cryptocurrency bull market following the upcoming Bitcoin halving, Ethereum is poised for significant success. It has become the platform of choice for a wide array of blockchain-based projects, spanning decentralized finance (DeFi), non-fungible tokens (NFTs), decentralized autonomous organizations (DAOs), prediction markets, and beyond. Recent upgrades to the Ethereum protocol have enhanced ETH’s appeal as a long-term investment.

A critical development, Ethereum Improvement Proposal (EIP) 1559, introduced a mechanism for burning the base transaction fee for all Ethereum transactions. This, effectively, reduced the overall supply of ETH. Furthermore, Ethereum’s shift to a Proof-of-Stake (PoS) consensus mechanism in September 2022 sparked a significant reduction in ETH issuance. This figure has dropped to around 1,600 new ETH per day from around 13,000 ETH per day under the former Proof-of-Work system.

Credit: coincodex

Arbitrum Leads as Top Ethereum Layer 2 Scaling Solution 

Arbitrum price
ARB | Credit: coincodex

Arbitrum stands at the forefront of Layer 2 scaling solutions for Ethereum. The platform uses optimistic rollups technology to make transactions faster and more cost-efficient while maintaining the Ethereum mainnet’s security.

As reported by the analytics platform L2Beat , Arbitrum currently holds the title as the most favored Ethereum Layer 2 scaling solution. It boasts a total value locked (TVL)  of $5.63 billion, surpassing its nearest competitor, Optimism, which has a TVL of $2.60 billion. Additionally, Arbitrum is recognized as the most active Ethereum Layer 2 solution, processing over 6.85 transactions per second.

With the potential for a cryptocurrency bull market attracting new investors keen on exploring on-chain opportunities, Arbitrum is well-positioned as the preferred scaling solution for Ethereum.

The project’s native token, ARB, commands a market capitalization of $2.28 billion, ranking it as the 37th largest crypto. In the event of a bull market, ARB could climb even higher in the market cap rankings.

Solana As A Leading Force in Speed and Efficiency Amidst Challenges

Solana price
SOL | Credit: coincodex

Solana is as one of the quickest smart contract platforms around. It’s important to note, however, that Solana has faced its share of challenges over the past year or so. These include technical glitches that led to temporary network halts and the fallout from the collapse of FTX, one of its major supporters, in a scandal that rocked the crypto world.

Despite these setbacks, Solana remains robust and active. Its exceptional scalability supports a range of applications that are impractical on many other blockchain platforms. Solana hosts several projects such as Stepn, Helium, Magic Eden, and Orca, showcasing its decentralized application (dApp) ecosystem.

Another compelling reason to consider Solana (SOL) currently is its market position, trading at over 64% below its all-time high. For those who see Solana’s enduring potential, now may be an opportune time to invest in SOL, especially with the upcoming Bitcoin halving on the horizon.

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